www.iva.co.uk

What will happen if my IVA practitioner makes me bankrupt? Before I have a chance of declaring myself bankrupt.

As discussed in previous threads I have no assets whatsoever. It has been agreed that I have no real beneficial interest in my wife's house. I don't own a car. Will the process still be the same? I have to provide a form 7.28? I worked out I have a little over £90 a month spare income in our household.

I have taken out my wife's creditor commitments out of the money coming in. As advised. Something I didn't do on my original IVA proposal. As it is a debt in my name only. Something I should have done with the IVA. But that's another story!

So is there a difference?

If they make you bankrupt the only real difference to you is that they pay the court fees.

Got this email today...


The Insolvency Practitioner has agreed that your IVA can be failed and the Failure process will now begin. As discussed I cannot give a timescale for this.

"He has asked me to advise you that Creditors are likely to seek an income payments order to take money directly from your salary. This is likely to be higher than your IVA payments which are lower because of the allowances for your partners Creditor commitments. This may reduce once your budget changes when the baby is born but you will need to take your own advice on this matter.

I wish you both the very best for the future

Regards"

Should I be worried?

The OR may decide not to charge you that much if they are aware there is a child on the way.

If you can't pay...then you can't pay.

I have done a income and expenditure and I have worked out I have around £80 per month in surplus income. This SOA was done, as advised, with my partners credit commitments taken out of her share.

Something that wasn't done with the IVA. As the debts are all in my name. This is legal isn't it?

Your partners finances don't really matter but for example may represent 50% of household bills.

I would speak to your local CAB about this. They may be able to shed some more light on the situation.

I have read more into this and it is my IVA practitioner using scare tactics. The fact that I will be paying considerably less with an IPA seems to escape their attention.

Well Payplan, time to name and shame.

Hi

If you do not agree with the IPA you can ask a court judge to decide how much you pay each month, this will then be an IPO[income payment order]
Creditors will not have any say on how much you pay each month once bankrupt

Regards